Published 6:34 pm, Friday, September 2, 2016

HARTFORD >> The state Insurance Department approved double-digit rate increases for several individual and small group health insurance plans but denied rate requests from ConnectiCare Insurance Co. and Anthem Health Plans because they were determined to be “excessive.”

Anthem and ConnectiCare, which requested 26.8 percent and 42.7 percent average rate hikes, respectively, were told to recalculate their rates and resubmit them to the Insurance Department no later than Sept. 7. Anthem was also asked to resubmit its calculation for small group rates, even though they were not part of the public hearing process in August.

Anthem’s individual plans cover 56,700 people and their small business plans cover another 42,200.

An Anthem spokeswoman said it is reviewing the department’s decision.

CTCare Benefits Inc., the ConnectiCare company that offers individuals plans on the Access Health CT exchange, originally requested a 14.3 percent rate hike. But it later revised that to 27.1 percent. Regulators approved a range of rate increases from 15.4 and 24.8 percent, with an average of 17.4 percent. The company’s on-exchange plans cover 47,597 people.

ConnectiCare had originally requested an 24.3 percent increase in its off-exchange plans, which it revised the day before the public hearing to 42.7 percent. That request was denied by regulators. The company’s off-exchange plans cover 37,142 individuals.

“ConnectiCare is still studying the Connecticut Insurance Department’s decision on our recent rate requests and evaluating what our next steps will be,” a spokeswoman for the company said.

For 2017, the average individual rate increase on and off the exchange is 24.48 percent and the average small group rate increase on and off the exchange is 12.88 percent.

The average rate increase that the Insurance Department approved this year has substantially increased, a fact that Insurance Commissioner Katharine Wade acknowledged in a statement accompanying the department’s decisions.

“The Connecticut market is experiencing what other states have seen this year — rising health care costs, increased demand for services, and significantly higher prescription drug costs. Therefore, in some cases higher rates were actuarially justified,” Wade said. “Under the ACA (Affordable Care Act) more people are covered and more are using their insurance. That increased demand for services, sunset of the federal reinsurance program, and volatility in the ACA’s risk adjustment program have had a major impact on rates for next year.”

Tom Swan, executive director of the Connecticut Citizen’s Action Group, said it’s amazing how the Insurance Department was able to spin a 25 percent increase in health insurance rates.

“By highlighting her denial of requests from two companies, and by using a three-year average, Commissioner Wade tried to mask the largest rate increase approval in Connecticut’s history,” Swan said. “Her rationale reads like talking points she would be writing if she was still officially lobbying for the industry.”

Gov. Dannel P. Malloy wrote U.S. Health and Human Services Secretary Sylvia Burwell to tell her that something needs to be done.

“I am very concerned and disappointed that these rate increases must occur,” Malloy said. “While I recognize that they are the reality, it is imperative that further action is taken at the federal level to stabilize rates. To fail to act is to fail consumers in Connecticut and nationally.”

Senate Minority Leader Len Fasano, R-North Haven, noted in a statement ““It’s undeniable that some of these large increases in insurance rates will cause many low income families to lose insurance because they simply cannot afford it.”

“To add insult to injury, they will be hit by a penalty from the federal government because they lack the income needed to purchase a plan. We need to act now to look at ways to reduce rates. Any Democrat who says we need to wait until next session is deliberately avoiding a tough issue before the election,” Fasano said. “The Democrats who pushed the Affordable Care Act onto the public are solely responsible for placing low income families at risk,”